Indonesia Textured Vegetable Protein Market Outlook to 2030

Indonesia Textured Vegetable Protein Market Overview

• The Indonesia Textured Vegetable Protein (TVP) market is gaining popularity due to the growing demand for plant-based protein sources. The Global Indonesia textured vegetable protein market was valued at USD 2.1 billion in 2023. This growth is primarily driven by the increasing adoption of plant-based diets and the cost-effectiveness of TVP as a meat substitute​.
• Prominent players in the Indonesian TVP market include global giants such as ADM, DuPont, and Cargill, which have established strong footholds. These companies are leveraging strategic partnerships and product innovations to expand their market presence.
• In May 2023, Roquette Frères launched a new Food Innovation Center aimed at boosting new product development in the plant-based sector. This center provides extensive R&D support and cutting-edge facilities to accelerate the introduction of innovative plant-based foods into the market.
• Indonesia is one of the world's largest producers of soybeans, the primary ingredient for TVP, Jakarta is the significant player in the textured vegetable protein (TVP) market due to its strategic location and large population. The city's proximity to major soybean production areas and its well-developed infrastructure enables efficient transportation and processing of soybeans into TVP.

Indonesia Textured Vegetable Protein Market Segmentation

The Indonesia textured vegetable protein market can be segmented in various factors like product, source and region.

• By Product: The Indonesia textured vegetable market is segmented by product type into textured soy protein, textured pea protein, and other plant-based protein. In 2023, textured soy is dominate the market share due to the popularity stems from its texture and flavor, which closely mimic those of meat, making it a preferred choice among consumers transitioning to vegetarian diets.

• By Application: The Indonesia textured vegetable market is segmented by application into retail, food service, and industrial. In 2023, retail capturing the largest market share by the growing consumer preference for cooking at home and experimenting with new dietary choices.

• By Region: The Indonesia textured vegetable market is segmented by region into north, east, west and south. In 2023, North region is lead the market primarily due to its higher population density and greater urbanization.

Indonesia Textured Vegetable Protein Competitive Landscape

• Indofood: In the first quarter of 2024, PT Indofood Sukses Makmur Tbk reported a slight increase in sales, reaching USD 2.06 billion compared to USD 2.05 billion in the previous year. This development indicates a challenging environment for profit margins despite stable sales growth, which may influence Indofood's strategic decisions and investments in the textured vegetable protein market.
• Du Pont: DuPont is set to launch a new line of enhanced flavor textured vegetable protein (TVP) products in 2024, aiming to mimic specific meat flavors more closely. This innovation is anticipated to set a new trend in the market and increase consumer acceptance.

Indonesia Textured Vegetable Protein Market Analysis

Indonesia Textured Vegetable Protein Market Growth Drivers

• Increase in Vegetarianism: In 2023, a report by Indonesia government stated that 25% of the Indonesia population is vegetarian and vegan. The population of Indonesia was around 6 million in 2023. And the percentage is grown over the past three years, boosting the consumption of TVP as a primary protein source. This dietary shift is supported by cultural and health trends observed through consumer surveys.
• Expansion of Export Markets: According to the Indonesian Trade Ministry, exports of plant-based protein products, including TVP, saw an increase in 2024, as global demand for sustainable food options grows. The government aims to further enhance this by negotiating lower trade barriers in key markets.
• Health Trend Acceleration: A report by the World Health Organization (WHO) highlighted a raise in health-related product consumption in Southeast Asia from 2021 to 2024, correlating with a rise in plant-based diet adoption. This trend significantly boosts the demand for textured vegetable protein as a health-centric food choice.

Indonesia Textured Vegetable Protein Market Challenges

• Supply Chain Volatility: Fluctuations in the global supply of soy, the primary ingredient for TVP, caused an increase in raw material costs for Indonesian producers in 2024, affecting profit margins and production stability.
• Regulatory Hurdles: Stricter food safety and labeling regulations introduced in Indonesia in 2024 have increased compliance costs for TVP manufacturers by up to 30%, posing a major operational challenge.

Indonesia Textured Vegetable Protein Government Initiatives

• Promotional Campaigns: The government launched a series of national campaigns in 2024 to promote the health benefits of plant-based diets, which have reached 20 million people and are expected to increase TVP consumption rates by 25%.
• Subsidies for Plant-Based Industries: In 2024, the Indonesian government allocated USD 5 million in subsidies to support plant-based food industries, aiming to decrease meat consumption by 15% over the next five years as part of its health and environmental policy.

Indonesia Textured Vegetable Protein Market Future Outlook

Indonesia Textured Vegetable Protein Future Trends Market

• Consumer Shift Toward Sustainability: Data from a United Nations report on sustainable eating practices suggests that by 2029, consumer demand for environmentally friendly products in Indonesia will double, significantly benefiting the TVP sector as a sustainable food option.
• Enhanced Production Technologies: By 2028, advancements in biotechnology are expected to increase the efficiency of TVP production, reducing costs and environmental impact, as per findings from the Asian Development Bank.